Answer :
It will cost $120,000 a day to house and feed a construction crew in the most remote reaches of northern Alaska. This would be an example of a situation requiring a reduction in project duration due to high overhead.
What is overhead?
The term "overhead" describes ongoing business costs that are not directly related to the provision of goods or services. It is important for budgeting and also for determining how much a business needs to charge for its goods or services in order to make a profit.
Expenses that are incurred to support a business but are not specifically tied to a product or service are collectively referred to as overhead. No matter how much or how little a company sells, it must constantly pay overhead. For example, in addition to the direct costs of providing its services (such as labor and supplies), a service-based business with an office must also pay overhead costs such as rent, energy, and insurance.
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